Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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RMBS

Residential mortgage-backed securities, or RMBS, are bonds or notes created by securitisation that are backed by residential mortgages or residential real estate loans. RMBS originators are typically financial institutions that originate residential real estate or residential mortgage loans, including banks, building societies/savings & loans and mortgage finance companies. However, issuers could also include government-guaranteed securities issued following bank bailouts, such as TARP or TALF, and the Government Sponsored Enterprises Fannie Mae and Freddie Mac. To create residential mortgage-backed securities, or RMBS, institutions sell pools of their loans to a special-purpose vehicle, or SPV, which then sells the loans to a trust. The trust then repackages the loans as interest-bearing securities and issues them. This true sale of the loans to the SPV ensures that the RMBS is treated as bankruptcy-remote from the originator. Many different types of assets back RMBS, including prime, non-conforming, sub-prime, Alt-A (or Alternative-A), buy-to-let and single-family rental (SFR) mortgages. The financial crisis caused residential mortgage valuations to plummet, leading to severe losses/defaults in many RMBS transactions (and ABS CDOs), as well as efforts to begin modifying loan documentation and indeed the creation of many credit/dislocation/distressed opportunity/recovery funds to take advantage of opportunities in the RMBS sector. Post-crisis, the Government Sponsored Enterprises Fannie Mae and Freddie Mac have developed a credit risk transfer market, comprising synthetic RMBS structures (whereby the risk is transferred via CDS tranches).


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    Job Swaps    17 December 2015
  • Greek foreclosure effect limited

    A new foreclosure framework will only offer limited benefit to Greek RMBS transactions, says Fitch....

    News Round-up    17 December 2015
  • Fed to maintain MBS policy

    In a unanimous decision by the FOMC, the US Fed announced yesterday that it is mov...

    News Round-up    17 December 2015
  • Counterparty rating actions inked

    S&P has taken various credit rating actions on 74 tranches in 33 European RMBS and ABS trans...

    News Round-up    17 December 2015
  • Euro secondary chugs along

    Despite wider credit market volatility the European securitisation secondary market is still maintai...

    SCIWire    17 December 2015
  • Aussie equity cushions increase

    Rising house prices have pushed down Australian RMBS LTV ratios, says Moody's. The additional equity...

    News Round-up    16 December 2015
  • Litvak case set for retrial

    The Second Circuit Court of Appeals has reversed the conviction of former Jefferies md Jesse Litvak...

    Job Swaps    16 December 2015
  • Liquid launch

    Agency RMBS favoured ahead of Fed lift-off

    A 25bp increase in the Fed funds target rate is widely expected to be announced later today. The pac...

    News Analysis    16 December 2015
  • Euro secondary split

    Activity and price direction in the European securitisation secondary market is currently split in t...

    SCIWire    16 December 2015
  • Market supports benchmark change

    A majority of US ABS and CMBS market participants would support switching the pricing benchmark from...

    News    15 December 2015
  • Ranieri recruits RMBS pro

    Ranieri Strategies has added two new partners, including Eric Kaplan to focus on structured finance....

    Job Swaps    15 December 2015
  • Euro secondary hangs on

    European securitisation secondary spreads are mostly hanging on despite increasing broader market vo...

    SCIWire    15 December 2015
  • LatAm outlook 'mixed'

    Fitch's outlook for Latin American structured finance in 2016 is mixed across sectors. Stable and po...

    News Round-up    14 December 2015
  • SCI Start the Week - 14 December

    A look at the major activity in structured finance over the past seven days

    Pipeline The pace of pipeline additions slowed last week. The final count consisted of two ABS, an...

    News    14 December 2015
  • SF practice strengthened

    DLA Piper continues to build its financial markets practice with the appointments of Vincent Keaveny...

    Job Swaps    14 December 2015
  • CMHC limits upped

    Canada Mortgage and Housing Corporation (CMHC) has announced a change to the guarantee fees it charg...

    News Round-up    14 December 2015
  • Euro secondary stays slow

    It was, as anticipated, another quiet day in the European securitisation secondary market on Friday...

    SCIWire    14 December 2015
  • Positive outlook for Canadian securitisations

    Moody's expects Canadian ABS and RMBS to continue performing well in 2016. The agency notes that ass...

    News Round-up    11 December 2015
  • NCUA settlement signed

    The NCUA has announced a US$225m settlement with Morgan Stanley to resolve claims arising from losse...

    Job Swaps    11 December 2015
  • Amherst leadership bolstered

    Amherst Pierpont Securities has expanded its senior leadership team with the addition of&am...

    Job Swaps    11 December 2015
  • Euro secondary slowdown

    The end of year slowdown in the European securitisation secondary market looks to be increasing. F...

    SCIWire    11 December 2015